Pecans: a sign of coming hyperinflation

The US and other western countries including Canada, have devalued and are intentionally devaluing their currencies in a vain attempt to remain competitive in the world market.

China is now buying up pecans, about a quarter the North American production, causing the price to shoot up by about 50%.  The Globe and Mail reports:

China bought about 100 million pounds (45 million kg) of pecans in 2009. That was about one quarter of the total pecan crop in the U.S. and Mexico, the world’s largest producers. And it compares with less than 5 million pounds roughly five years ago. The strong demand has sent prices for some pecan varieties soaring to $6.50 (U.S.) a pound, from $4.25 in January, according to Mr. Zedan.

Imagine when China raises the value of yuan against the dollar.  When that happens all commodities will shoot up in price as there will be suddenly a billion consumers with significantly increased buying power.  Meanwhile, forget about those pecan and chocolate cookies we used to eat as kids.  That will become a luxury item.  Food is skyrocketing in price and the Federal Reserve calls this “deflation”.

What if we made nuts the bellweather of inflation?  They are certainly a better indicator than the CPI.

CPI is a lie

The government inflates the currency and then determines the rate of inflation, the so-called CPI.  But the CPI is a lie.  It is supposed to be at or near zero in the US and yet prices for most necessities are increasing.  This year, for the second year in a row, Social Security benefits will not rise for American senior citizens.  So reports Market Watch:

Understand that the CPI does not measure everyone’s cost of living. Rather, it is designed to represent changes in the market basket of goods and services bought by the average household each month.

However, seniors’ market basket is different. It consists mainly of such items as food, energy, taxes, transit fares, tolls and, of course, health care, such as insurance, doctors, prescription drugs, hospitals, assisted living and nursing homes.

These costs are not falling — they are rising quite rapidly. As a matter of fact, health-care costs are just about the only item that did not dip for even one month during the recession. has alternative to the CPI to measure using the data that was in force in 1990, which gives a current inflation rate of about 8%.  Thus, Americans depending on Social Security are rapidly falling behind and the reason is that the CPI is a lie.